diagnosis:replace leak detection pump-engine light on on 2004 Volkswagen Beetle

Engine light came on my 2004 VW Beetle. VW Repair said need to replace leak detection pump at a cost of $1,000 parts & labor---and not covered by warranty. Questions: Is this related to catalytic converter warranty extension issued by VW in April, 2010? Is there any safety hazard if not replaced right away? Does estimate of cost sound right? Thank you!

Asked by for the 2004 Volkswagen Beetle
it has nothing to do with the cat. not a saftey hazard, just unable to operate the system correctly. the estimate sounds right, the pupmp is very pricy.

The pump cost around $ 250-300. Takes half an hour to replace. So $ 750.-for half an hour labor ? Glad I don't go to your shop!! (To be fair, the troubleshooting on this EVAP-system can be time consuming, but still...)
Wrong. I just got the LD pump replaced on my 2008 Volkswagen City Golf, at the dealership. It was covered under warranty (I have it on a 48-month lease), but I sneaked a look at the dealer's copy of the invoice which showed $500 cost for parts & labour.
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I replaced the leak detection pump in my 2004 beetle appx 5 months ago. The part was almost $700 retail according to the shop, and they gave me a 20% discount. With parts, labor and tax, my total was $715. however, my check engine light never came on...